Accounting Multiple Choice Question – 24 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A business provided the following information per unit about a product.

  • selling price – £20.00
  • variable cost – £12.50
  • fixed cost – £3.50

What is the contribution to sales ratio?

Select ONE answer:

  1. 20%
  2. 37.5%
  3. 62.5%
  4. 80%

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – £20 – £12.50 = £7.5 / £20 ==> 37.5%
  3. Not correct
  4. Not correct

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